Научная статья на тему 'Analysis of the organizational and legal aspects of regulation tourism industry: domestic and foreign experience'

Analysis of the organizational and legal aspects of regulation tourism industry: domestic and foreign experience Текст научной статьи по специальности «Экономика и бизнес»

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TOURIST INDUSTRY / MANAGEMENT / ORGANIZATIONAL AND LEGAL ASPECTS DEVELOPMENT MODEL / FOREIGN EXPERIENCE / STRATEGIC PROGRAM FOR THE DEVELOPMENT OF TOURISM

Аннотация научной статьи по экономике и бизнесу, автор научной работы — Dobrovolskaya O.P., Koldina A.Y., Tsaruk O.V.

The organizational and legal aspects of management by tourist branch in Ukraine are considered. Analyzed the management model of tourist industry in foreign countries. There is substantiated the optimal model of management of the tourism industry in Ukraine. Proposals were developed in the sphere of state regulation of tourism in Ukraine at legislative and institutional levels.

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Текст научной работы на тему «Analysis of the organizational and legal aspects of regulation tourism industry: domestic and foreign experience»

Ученые записки Таврического национального университета имени В.И. Вернадского Серия «Экономика и управление». Том 25 (64). 2012 г. № 4. С. 105-115.

УДК 338.486.796.5 (477)

ANALYSIS OF THE ORGANIZATIONAL AND LEGAL ASPECTS OF REGULATION TOURISM INDUSTRY: DOMESTIC AND FOREIGN

EXPERIENCE Dobrovolskaya O.P., Koldina A.Y., Tsaruk O.V.

Taurida National V.I. Vernadsky University, Simferopol, Ukraine E-mail: [email protected]

The organizational and legal aspects of management by tourist branch in Ukraine are considered. Analyzed the management model of tourist industry in foreign countries. There is substantiated the optimal model of management of the tourism industry in Ukraine. Proposals were developed in the sphere of state regulation of tourism in Ukraine at legislative and institutional levels.

Keywords: tourist industry, management, organizational and legal aspects development model, foreign experience, strategic program for the development of tourism.

Formulation of the problem. Modern Ukraine occupies one of leading places in Europe on security with the valuable natural and historical and cultural resources, capable to generate tourist interest.However, despite the considerable existing recreational potential tourism, unfortunately, did not take a position in the industrial structure of the state economy is small and its economic returns. Ukraine has significant potential for dynamic development of tourism and recreation activities, expanding international cooperation in that environment. However, there is still no complete and adapted to market conditions, the state policy of development of domestic tourism, to increase its efficiency and cognitive value. There is no qualified personnel for work in this sphere new to us. The state, in fact, lost control of its development and activity regulation. [8] Reasons for this lie not so much in the protracted transition to a market economy, but in the absence of appropriate public policies in the tourism sector, the optimization of which will bring the industry one of the leaders of the national economy.

Analysis of the latest research and publications. Studying the issue of state regulation of the tourism industry received much attention in the works of both domestic and foreign scholars. Thus, in works Yuri Alexeev [1] and Berkowitz B. [4] The problems of the formation of the organizational and economic mechanism for the tourist industry in the post-Soviet states. Work Boruschak M. [5] V. Gerasimenko [7] and Zorinal. [11] are devoted to the analysis of the theoretical and methodological aspects of the formation and transformation of the concept of governance tourist industry in a market economy. Kotler F. [12] and Marinin M. [14] characterize the relevance of the use of marketing instruments in the effective management of the tourism industry in the marketplace. Scientific papers Pisarevsky E. [15] and Tsybukh B. [18] are devoted to the analysis of problems of state regulation of the tourism industry on the example of the Russian Federation and Ukraine. And in the works Tsehly S. Y. reflected peculiarities of formation and development of the tourism industry ARC [17]. However, despite the fairly extensive research in this area, is still relevant to analyze the possibility of use in Ukraine excellence of world leaders of the

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tourist services in the study and implementation of an effective management mechanism of the tourism industry. Accordingly,the purpose of articleis development of the corresponding methodological recommendations about improvement of model of regulation of tourist activity in Ukraine on the basis of introduction of the international experience of modeling of public administration by tourism.

The main results of research. Currently, Ukraine is acute problem of developing an effective mechanism of state regulation of tourist activity. In this regard, the current is the use of foreign experience of countries where tourism is an important sector of the economy. Current "state proclaims tourism one of the priorities of the national culture and the economy, creates favorable conditions for tourism" - so says the law of Ukraine "About Tourism" [10].

The basis of the regulatory framework of the tourism activities and resorts in Ukraine, form:

- the law "About Tourism" (2003) is the fundamental act defining the general legal, organizational, pedagogical, social and economic bases of realization of a state policy in the field of tourism, comprehensively regulates tourist activity in Ukraine, creates conditions for stimulate business activity of subjects in tourist business, provides an optimum state regulation level of development of domestic tourism. This Law defines the general legal, organizational and social and economic bases of realization of a state policy of Ukraine in the field of tourism and is directed on providing fixed by the Constitution of Ukraine of the rights of citizens on rest, a freedom of movement, health protection, the right on safe for life and health environment, satisfaction of spiritual needs and other rights at implementation of tourist travel. Public authorities, local governments are required to monitor compliance with the requirements of legislation on tourism activities, to inspect the quality of the provided or tourist services, compliance with license conditions, standards, norms and rules of tourism activities and, according to the law, to take action for infringement legislation in the field of tourism [10];

- the Law of Ukraine "On the resorts" (2000), defines the principles of state policy in the spa industry, legal, institutional, economic and social aspects of development of Ukraine and resorts aims to provide rehabilitation and treatment of people who use the resort and their protection [9];

-the law of Ukraine "About personal country economy"(2003);

-the law of Ukraine "About standardization"(2001);

-the law of Ukraine "About licensing of certain types of economic activity" (2006) and other.

Besides, indirectly, activity in the sphere of tourism is regulated:

-water, Forest and Land by codes of Ukraine, the Code of Ukraine about a subsoil;

-laws of Ukraine "About protection of surrounding habitat", "About reserved fund of Ukraine";

- resolutions of the Cabinet of Ministers of Ukraine "About the statement of an order of creation and maintaining the State inventory of natural territories of resorts", "About the statement of an order of creation and maintaining the State inventory of natural medical resources".

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Organizationally, Ukraine largely inherited experience of regulating this sector which has developed during the former Soviet Union, in which the regulation of the tourism industry was monopolized by the state. In the post-Soviet period has been completely disrupted the existing system established contacts and tours, training of qualified personnel, eliminated Glavinturist Ukraine. From 1991 to 1993, is the field of management of joint stock companies "Ukrintur" and only in 1993 inUkraine appeared a full executive authority in the field of tourism - the State Committee on Tourism, which operated in 52 enterprises and institutions of national property [19]. This was followed up by the General Agency for Tourism in the regions and in Kyiv, tourism authorities in the Republic of Crimea and Sevastopol. But due to the repeated restructuring government departments State Committee for Tourism has been reformed, first in the State Committee of Youth Policy, Sports and Tourism, by combining with other committees, and in 2002 was established the State Tourist Administration of Ukraine. Today the central executive authority regulating tourism, the State tourism agency of Ukraine and resorts, which activity goes and coordinated by the Cabinet of Ministers of Ukraine is included into system of executive authorities and provides realization of a state policy in the sphere of tourism and resorts. The State tourism agency of Ukraine and resorts is the main objectives realization of: a state policy in the sphere of tourism and resorts, and proposing its formation.

At the regional level, the Ministry of Resorts and Tourism of the Autonomous Republic of Crimea is an organ of the executive authorities of the Autonomous Republic of Crimea, accountable, responsible and controlled by the Council of Ministers of the Autonomous Republic of Crimea and the Verkhovna Rada of the Autonomous Republic of Crimea, coordinating activities, cross-sectoral regulation, executive functions and powers in resorts and Tourism on the issues related to self-management of the Autonomous Republic of Crimea, as well as state executive functions, ensures the implementation of the state policy in the industry.

Today for the sphere of state regulation of the tourism industry in Ukraine is characterized by:

- inadequate regulatory framework compared to global industry standards;

- the lack of stimulating tourism development functions of the state in the implementation of its fiscal policy;

- lack of budget financing of government programs supporting tourism, commercial development of domestic tourism product, of national and international tourism exhibitions, festivals and competitions.

In the modern world has valuable management experience in regulating this sector, in which there are several models for managing tourism industry (table 1).

The model of liberal market implies the absence of the central state administration. All issues related to tourism development, are solved at the regional level or self-entities based on the operational management and market economy principles. Individual governments take such a decision, in cases where a country has a strong position in the international tourism market is attractive to foreign tourists. Also, the model functions in the countries where the subjects of the tourist market have strong positions, meaning they can solve their problems without government participation, in

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particular capable of powerful self-promotion in the interest of the national market. This model of management of tourism-characteristic for the U.S. - the country with the highest level of development of tourist infrastructure, strong leading position in the international tourism market, competitive private companies. As noted by Mr. Harris and C. Katz, tourism is usually taken for granted, so the public financing programs it is either missing or not it is treated as seriously as, for example, the high-tech industry. While promoting tourism should be the responsibility of the federal government, as well as support for any other economic activity [16].

Table 1

Model of development of tourist industry

Model of development of tourist industry

Model of the liberal market (American) Keynesianmodel Mixed model (European)

Issues of

development of

entrai public Existence of the tourist activity are resolved at the

administration, all strong and level of the

The main features issues are resolved on authoritative diversified

the ground, based on the principles of market "self- ministry supervising activity of all ministry; clear split of bodies of the state administration

organization" . branches. of tourism into two branches: standard and coordination and marketing.

Switzerland,

Countries USA Turkey, Egypt, Tunisia, Croatia, Malta. Georgia, Latvia, Germany, Austria, CzechRepublic, France, Sweden, Spain.

The legal basis for regulating tourism activities have been recorded in the U.S. First National Law "Onlnternational Tourism", which was adopted in 1961, it provides for the creation of the Administration of Travel and Tourism (ATT) in the Federal Ministry of Commerce. Then in 1981, the Law "On the national policy on tourism," and on May 30, 1992 - The Law "On the policy in the tourism and export development," according to which the ATT had the following main objectives: coordinating public policy tourism for the benefit of U.S. tourist market trends research, statistics of tourism, tourism development program guide, support for states, counties, cities and rural areas. In 1996, Congress passed another law for the development of tourism and in January 1997 began to function in it provided a new Federal Tourism structure - the

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National Organization of Tourism (NOT) [14]. In order to save the budget in 1997, NOT was eliminated. Instead, the U.S. has an Advisory Board Travel and Tourism (USTTAB) - sufficiently powerful body, which is composed of representatives of the major tourism industry.

Causes of active transformational changes in institutional arrangements for management of the tourist sphere the United States were: strong positions of the USA in the international market of tourism; appeal of the country to the foreign tourists, not demanding additional advertising; existence in the industry of tourism of the strong private companies capable of powerful independent advertising campaigns in interests of all national market.

It should be noted that the relevant American regulation model of tourist industry in a situation where the subjects of the tourist market are strong and are able to solve all the problems without government intervention. This mechanism is effective in countries with a developed market economy, which is dominated by private companies of different sizes and specialization.

An important aspect of the implementation of the American management model of tourist industry should be considered as a well-developed infrastructure, ensure the safety of tourists, the high level of reliability of the banking and insurance sector, a high level of medical care that Ukraine has not been characterized yet. Therefore, the use of this model in its pure form in Ukraine today is not possible.

The Keynesian model provides existence of the strong and authoritative ministry supervising activity of all branches. The ministry thus has considerable powers in the sphere of investments, market researches, trainings, advertising and etc. For its realization certain conditions are required: big financial investments in the tourism industry, advertising and marketing activity, investment in tourist infrastructure.Administrative function of the state in this model is to regulate supply and demand, income and prices for travel services. As a rule, this model is inherent in the states which consider recreational and tourist activity as important sector of economy and one of the main sources of currency receipts and put considerable means in its development .Typical representatives of the world tourism market, which feature the model regulation of tourist industry are: Egypt, Mexico, Turkey, Tunisia.

Most successful country using Keynesian regulation model of tourism is Turkey. The government could develop rather competent and effective policy of state stimulation of branch. Thanks to it for a short time it turned in world State tourism with an annual turn more than 10 bln. dollars.

The substantiation and implementation of the state policy in the field of tourism are the responsibility of the main executive body - the Council of Ministers of Turkey.

System tools for the implementation of the regulatory functions of the state in the form of tourism:

• complex certification of the enterprises of sanatorium and tourist sectors;

• certification of investment activity in the tourism sphere;

• fund of development of tourism;

• tourist bank;

• inspection service in the sphere of resorts and tourism [3].

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Powers on development of infrastructure of resort territories are assigned to the profile Ministry of Culture and tourism. The ministry was formed in 2003 and focused on the resolution of urgent management problems, including:

• coordination of activity of the state departments regarding tourism development, cooperation with other departments, municipal structures, public organizations and the private sector;

• support of development of tourism;

• development and marketing of tourist sector (as main branch of national economy);

• use of investment, communication potential for tourism development;

• providing, and in case of need and nationalization of the real estate connected with investments into tourism;

• studying, development, protection, assessment, distribution, promoting, introduction of tourist values [3].

The Turkish Government pays special attention to the financial support of tourism. Methods of public financial support for the development of tourism:

• providing tax preferences and releases from payment of taxes of the organizations and the businessmen developing internal and entrance tourism;

• allocation of budgetary funds on advance (marketing, advertising, exhibitions, etc.) internal and entrance tourism;

• public financing of the most significant projects in the tourist industry, trainings for tourism;

• the budgetary subventions and subsidies, to national carriers, tour operators, etc., carrying out development of internal and entrance tourism [3].

The legal regulation of tourism in Turkey is based on the adoption in 1982 of the Law "On the promotion of tourism," which is pronounced in public law nature, provides for the implementation of state support tourism and the mechanism of their implementation, specifies the use of real estate for tourist purposes, the regulatory framework public investment in the tourism industry, the legal status of the State tourism Development Fund, the tax benefits for investors, the need to support the development of yacht tourism.

In 2007, the Turkish government has developed and adopted a strategy for the development of tourism in Turkey until 2023. The strategy aims to promote cooperation between the public and private sectors in the field of tourism. The purpose of the Strategy: the top five tourist-developed countries in the world with a maximum on the number of tourist arrivals and profits from tourism. According to the operational plan for the implementation of the Strategy (2007, 2013.) in 2013 plans to create seven tourist development corridors and nine cultural and tourism zones to attract 40 million tourists, in addition to the airport, 11 cruise ports, 10 tourist cities and 9 boats [3].

In general, the mechanism of regulation of tourism in Turkey comes to benefits and incentives. Thus, the acquisition of certificates for activity, benefits and rights under the law is mandatory for investors and tourism companies in Turkey. Certified tourism enterprises provide the Ministry annually price lists of travel services and products in the following calendar year. Certified companies cannot set prices, except

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those listed in the list and approved by the Ministry. Travel investors and operators of certified tourism holdings in any transfer or lease their enterprises obtain prior agreement for this Ministry, twice a year inform the Ministry about the investment and provide quarterly data to the Ministry of the results of its operations.

The government actively supports the hotel business. Through special tourist bank hoteliers compensate the interest on loans obtained in commercial financial institutions. The tax benefits - the first 4 years the hotel owner is exempt from all taxes, except payments to social funds. If the four years of the hotel does not pay benefits, the state provides the possibility of extending tax holidays. This approach contributes to the transparency of the hotels in Turkey. An infrastructure provision tourist area, the centers also subsidized from the state budget of Turkey and has a target orientation. Annually in development of hotel business of Turkey it is invested to 2 billion dollars [6, p. 6].

Thus, the state policy in the sphere of resorts and tourism of the Republic of Turkey considerably differs from Ukrainian both from the point of view of powers of profile executive authorities, and from the point of view of the amounts of financing. The main difference is existence of the developed instruments of the state support of business, and also very large powers of the profile Ministry of Culture and tourism of Turkey. Obviously, for Ukraine is an urgent financial support mechanism of tourism enterprises, control methods of pricing, as well as mechanisms of tax incentives implemented in the Republic of Turkey.

A mixed model of state regulation of tourism industry implemented in several European countries (Switzerland, Georgia, Latvia, Germany, Austria, the Czech Republic, France, Sweden, Spain) and is characterized by the absence of strict regulation the organizational structure of tourism (tab. 2). For example, in Western Europe most often it is ministry with an economic bias. One more essential component of such model of state regulation - clear split of bodies the state administration of tourism into two branches. One branch deals with global issues of public administration: standard and legal base for branch, processing of statistical information, coordination of activity of regions and the international cooperation at interstate level. The second branch is marketing. It, as a rule, department which submits or is a part of the tourist ministry, but by itself is not a governing body. Everything is included in its competence that is necessary for creation of an image of the country abroad: participation in exhibitions, management of the tourist's information centers abroad. And these institutes receive the main share of financing. The public administration of tourism in the developed European countries works in interaction with local authorities and private business for attraction to performance of the state problems of financial means from the private sector, finding of mutually advantageous forms of cooperation between governing bodies of various levels.

The most successful breakthrough in the field of effective regulation of the tourism industry of all post-Soviet countries was made by Latvia. In this country, government regulation of tourism business reduced to a minimum.

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Table 2

Governing bodies of the tourist sphere in the countries with the mixed model

Country Specialized division in the ministry Ministry (department)

Switzerland The state secretariat on economic problems; Swiss national tourist corporation Switzerland Tourism. Federal Department of Economy

Latvia Latvian agency of development of tourism; Latvian consulting council on tourism. Latvian Ministry of Economy

France The State Secretariat for Tourism and the Office of Tourism; "Maison de la France". The Ministry of Economy, Finance and Industry

Italy Department on tourism; National administration on tourism. Ministry of Economic Development

Czech Republic Tourism department; National tourist administration CzechTourism. Ministry of Regional Development

Georgia National tourism agency The Ministry of Economy and Sustainable Development

Spain The state secretariat on trade, tourism and small business; Spanish institute of tourism "Turespana". The Ministry of Economy and Finance

The legal base of state regulation of the tourism industry in Latvia, the form:

• Law of Latvia «On Tourism» (1998);

• The position of the Latvian Tourism Development Agency (2004);

• Rules on Education database of tourism enterprises (companies) (1999);

• Regulations on the advisory board of the Latvian Tourism (1999);

• Rules on integrated tourism services (2000);

• Regulations on tourism fund (2003);

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• On the Statute of the International Organization of tourism (2003) [2].

The basic state regulatory function in the area of tourism of Latvia performs the Ministry of economy, which is responsible for the elaboration of the state policy of development for tourism, organization and control of its implementation; development of draft laws and draft normative acts; representation of interests of the state in the tourism industry; planning of the state support the tourist industry; preparation and implementation of international agreements on cooperation in the sphere of tourism, as well as the coordination of the development of international projects [2]. An additional feature in this area is also implements the State tourism development Agency (TAVA), which is the state body, under the supervision of the Ministry of economy. In the

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competence of the Latvian development Agency of tourism are: ensuring the implementation of tourism policy; the implementation of a tourist shares in Latvia and abroad; the implementation of a public-private partnership projects in the field of tourism; mobilization of financial resources for the development of tourism; the creation and support of a system of tourist information; the creation of tourism information offices abroad and in Latvia, as the structural divisions of the State Agency of tourism development; participation in the implementation of transnational agreements in the field of tourism; analysis of local and international tourist market; introduction of international standards of quality management in tourist services [2].

It should be noted that real regulation at almost all levels in Latvia is given to business associations. The cabinet of Ministers created the Latvian advisory board on tourism as joint, advisory and coordinating structure in which representatives of the ministries, self-managements, the tourist enterprises and the public organizations participating in implementation of policy in the sphere of tourism are included. The purpose of activity of the Latvian advisory board on tourism is contribution to cooperation of the ministries, self-managements, the tourist enterprises and other businessmen and the public organizations participating in implementation of policy in the sphere of tourism, for the purpose of contribution to development of tourism, integration of tourist branch into process of social and economic development of the state and protection of interests of those businessmen which provides tourist services.

In the system of the most effective tools of regulation in the tourism industry of Latvia, should be highlighted: a long-term, stable and effective tax policy in the field of tourism; monetary instruments for stimulating the tourism industry; the functioning of the travel Foundation; attracting domestic and foreign investment; the development of programs and the development of domestic and international tourism; international cooperation in the sphere of tourism; simplified visa regime and the order of crossing of borders [2].

State stimulation of tourism in Latvia is manifested in the allocation of budgetary funds for promotion (marketing, advertising, exhibitions, etc.) internal and entrance tourism; the state financing of the most significant projects in the tourist industry, the training of personnel for tourism; the allocation of budgetary subventions and subsidies to national carriers and tour operators, engaged in the development of internal and entrance tourism.

Thus, the state policy in the sphere of resorts and tourism of the Republic of Latvia is carried out by interaction of above-mentioned institutes of the power, the organizations and establishments.

Differences between Ukraine and Latvia at institutional level (including powers of authorities) practically are absent. Thus in Latvia institutes and instruments of management of a state policy in the sphere of tourism which aren't present in Ukraine function characteristic to the «tourist» states, namely - Advisory board and tourist fund. It is necessary to consider that functionally advisory board isn't allocated with so high powers, as, for example, in Turkey. The distinctive feature also supports the existence of a legal basis of self-government. Given the experience of Latvia, Ukraine is advisable to establish the Advisory Council for the resort, which is able to perform an advisory role in the regulation of the tourism industry.

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Conclusion. Unfinished development of an appropriate system of state management in the sphere of tourist services in the USSR at the time of the declaration of an independent state of Ukraine didn't give the chance on entry conditions of transition to the market adequately to react to this fact and in due time to create appropriate authorities of management that led to destruction of important components of its infrastructure.

The transformation of the governance structure of tourism industry in Ukraine for a long period has led to the destruction of virtually vertical sector management.

It is necessary to make use of the experience of foreign countries directed on creation and fixing of positive image of Ukraine as the countries for tourism development, attractive to tourism.

The most appropriate form of organization of the tourism industry in Ukraine, in our opinion, is a mixed model of management in tourism industry. Therefore, high priority for the development of tourism in Ukraine is to develop a coherent strategy for its development at national and regional levels, with international experience in regulating the tourist industry focused on the national historical, legal and cultural characteristics of the territory.

Important components of the optimal model of management in tourism industry must be considered: improving the legal framework in accordance with the law and international standards; review of approaches to taxation, restoration of budget financing of government programs supporting tourism.

In the organizational plan it is necessary to implement a set of measures, including:

- creation in structure of the State agency of Ukraine on tourism and resorts of administrative and marketing departments, and also creation of a regional network of tourist representations;

- preparation of the organizational and legal base concerning stimulation and encouragement of construction and reconstruction of objects of tourist infrastructure in Ukraine;

- ensuring development of advertising of a domestic tourist's product;

- carrying out the international and national tourist exhibitions, festivals, competitions.

The implementation of activities aimed at improving the management of the tourism industry, will allow Ukraine to take a decent position in the system of the world tourism market.

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Поступила в редакцию 01.12.2012 г.

Добровольская О.П. Анализ организационно-правовых аспектов регулирования туристической отрасли: отечественный и зарубежный опыт / О.П. Добровольская, А.Ю. Колдина,О.В. Царук // Ученые записки ТНУ. Серия: Экономика и управление. - 2012. - Т. 25 (64), № 4. - С. 105-115.

В работе рассмотрены организационно-правовые аспекты управления туристической отраслью в Украине. Проанализированы модели управления туристской отраслью в зарубежных странах. Обоснована оптимальная модель управления туристской отраслью в Украине. Разработаны предложения в сфере государственного регулирования туризма в Украине на законодательном и институциональном уровнях.

Ключевые слова: туристическая отрасль, управление, организационно-правовой аспект, модель развития, зарубежный опыт, стратегическая программа развития туризма.

Добровольська О.П. Ан&щз оргашзацшно-правових аспекпв регулювання туристично!' галуз^ в^чизняний та зарубшний досввд / О.П Добровольська, А.Ю. Колдша О.В. Царук // Учьоние записки ТНУ. Серия: Економжа та управлшня. - 2012. - Т. 25 (64), № 4. - С. 105-115. У робота розглянуто оргашзацшно-правови аспекти управлшня туристичною галуззю в Украш. Здшснено анализ моделей розвитку туризму в зарубижних крашах. Розроблеш пропозици щодо вдосконалення державного регулювання туризму в Украш на законодавчому та шституцшному ривнях.

Ключовi слова: туристична галузь, управлшня, оргашзацшно-правовий аспект, закон, индустрия, держава, модель розвитку, зарубижний досвщ, стратепчна програма розвитку туризму.

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